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V2005-24 19 September 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

Management services for a Dutch company are not subject to VAT if it has no permanent establishment in Spain

A Spanish company provides procurement and sales management services to its Dutch partner, which operates in tax warehouses in Spain. The DGT has ruled that if the Dutch company does not have a permanent establishment in Spain, the services are not subject to VAT.

The question raised

Whether the services consulted are subject to Value Added Tax

The DGT's ruling

Management services are located according to the general rule of Article 69.One.1º of Law 37/1992, applying the tax if the recipient has a registered office or permanent establishment in Spain. For a permanent establishment to exist, an adequate structure of human and technical resources with a sufficient degree of permanence and autonomy is required. The mere fact of contracting logistics services or having a VAT number in Spain does not constitute a permanent establishment. If these conditions are not met, the provision is not subject to VAT in Spanish territory.

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